Bombardier Announces Conditional Notices of Partial Redemption for US$338,000,000 of its 7.125% Senior Notes due 2026 and US$450,000,000 of its 7.875% Senior Notes due 2027 

Rhea-AI Summary

Bombardier has announced conditional notices of partial redemption for its 7.125% Senior Notes due 2026 and its 7.875% Senior Notes due 2027. The company plans to redeem US$338 million of the 2026 Notes and US$450 million of the 2027 Notes on June 20, 2024. The redemption price for the 2026 Notes is 101.781% of the principal amount, and for the 2027 Notes, it is 100.00% of the principal amount, both plus accrued and unpaid interest.

This partial redemption is contingent upon Bombardier successfully completing a new debt offering of at least US$750 million by the redemption date. The redemption will be processed through the Depository Trust Company. This announcement does not constitute an offer to sell or buy the securities in any jurisdiction where such an offer would be unlawful.

Positive

• Bombardier plans to redeem US$338 million of 2026 Notes and US$450 million of 2027 Notes, reflecting proactive debt management.
• The redemption of notes at 101.781% for 2026 Notes and 100% for 2027 Notes indicates a manageable premium, preserving financial resources.
• The new debt offering of at least US$750 million signals potential investor confidence and liquidity.

Negative

• The redemption is conditional on completing a new debt offering, adding financial uncertainty until the offering is successful.
• High interest rates on redeemed notes (7.125% and 7.875%) indicate historical high-cost borrowing.
• Potential delays or waiver of conditions by Bombardier can lead to investor uncertainty and impact stock performance.

MONTRÉAL, May 21, 2024 (GLOBE NEWSWIRE) -- Bombardier Inc. (“Bombardier”) today announced that it has issued a conditional notice of partial redemption for US$338 million aggregate principal amount of its outstanding 7.125% Senior Notes due 2026 (the “2026 Notes”), and a conditional notice of partial redemption for US$450 million aggregate principal amount of its outstanding 7.875% Senior Notes due 2027 (the “2027 Notes” and, together with the 2026 Notes, the “Redemption Notes”). As set forth in the conditional notice of partial redemption issued today in respect of the 2026 Notes, the redemption date is June 20, 2024, and the redemption price for the 2026 Notes is 101.781% of the principal amount redeemed, plus accrued and unpaid interest. As set forth in the conditional notice of partial redemption issued today in respect of the 2027 Notes, the redemption date is June 20, 2024, and the redemption price for the 2027 Notes is 100.00% of the principal amount redeemed, plus accrued and unpaid interest. Each redemption of the Redemption Notes is subject to and conditioned upon Bombardier completing a new offering of debt securities in the aggregate principal amount of not less than US$750 million before the June 20, 2024 redemption dates; however, Bombardier may delay or waive this condition in its sole and absolute discretion. 

On May 21, 2024, a copy of each of the respective conditional notices of redemption with respect to the Redemption Notes was issued to the respective record holders thereof. Payment of the redemption price and surrender of the respective Redemption Notes for redemption will be made through the facilities of the Depository Trust Company in accordance with the applicable procedures of the Depository Trust Company on June 20, 2024. The name and address of the paying agent are as follows: Deutsche Bank Trust Company Americas, c/o Deutsche Bank Services Americas, 5022 Gate Parkway, Jacksonville, Florida 32256, Attention: Corporate Team/Bombardier Inc., Tel: 1-800-735-7777.

This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.

The Redemption Notes mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The Redemption Notes mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada may only be made on a basis which is exempt from the prospectus requirements of such securities laws.

FORWARD-LOOKING STATEMENTS

Certain statements in this announcement are forward-looking statements based on current expectations. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from those set forth in the forward-looking statements.

For information

Francis Richer de La Flèche Vice President, Financial Planning and Investor Relations Bombardier +1 514 240 9649

Mark Masluch Senior Director, Communications Bombardier +1 514 855 7167

FAQ

What is Bombardier's plan for partial redemption of its Senior Notes?

Bombardier plans to partially redeem US$338 million of its 7.125% Senior Notes due 2026 and US$450 million of its 7.875% Senior Notes due 2027.

When is the redemption date for Bombardier's partial redemption of notes?

The redemption date for Bombardier's partial redemption of notes is June 20, 2024.

What are the redemption prices for Bombardier's 2026 and 2027 Senior Notes?

The redemption price for the 2026 Notes is 101.781% of the principal amount, and for the 2027 Notes, it is 100.00% of the principal amount, both plus accrued and unpaid interest.

What is the condition for Bombardier's partial redemption of notes?

The redemption is conditioned upon Bombardier completing a new debt offering of at least US$750 million by June 20, 2024.

How will the redemption of Bombardier's notes be processed?

The redemption will be processed through the Depository Trust Company in accordance with its procedures.